question about markup

[caa60126]

I am a new and inexperienced prospective buyer. I am thinking about the XLT, 4k, x4, and some additional add-ons, so I use the online price tool to come up with a number.

I hear a lot of talk about "markup", but where does that number come into play?

My dealer says an 800-dollar "doc fee" is added to the online price calc and that is it. Of course, local taxes, plates, and registration fees. Are the "markup" numbers added by some dealers later? Is it already in the MSRP online price calc?

Nothing down, no deposit, back out anytime, no penalty, they said they could sell that unit in a week. One dealer did ask for 1k down and if I back out it is lost.

FoCo, Colorado,

• BASE MSRP
• OPTIONS
• ACCESSORIES
• DESTINATION CHARGES
• ACQUISITION FEES
• TOTAL MSRP
• ESTIMATED NET PRICE 35.135k

Excuse my naivety, please.

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[BigB]

No the Markup is what some dealers add on to the price to basically screw you to make a profit. If you pay it they make more profit and if you don’t they will sell it to someone for the marked up price. Some dealers will add overpriced stuff you didn’t ask for like window tint,ceramic coating,..etc to get you to pay more. Thankfully min didn’t do any of that.

 

[BigB]

Hopefully someone in your area can help you find a good dealer that won’t try to screw you. There are good ones out there, good luck.

 

[Waterick]

Usually the mark ups are on trucks available to be purchased actually off the lot. These are often prior owned by people just flipping them for profit or trade ins by someone who got a good deal on a new one. They may also be trucks that were ordered, but got refused by the customer for whatever reason. A scrupulous dealer won't mark up beyond MSRP for an ordered Maverick. Ford doesn't approve of the practice. Your dealer sounds good, a deposit is up to a given dealer (not required by Ford) and should be refundable. Your dealers 'doc fee" is on the high side but, probably within the norm for your area. Make sure you get a sales document outlining the total price signed by the sales manager, not just salesman. I think an acquisition fee is just another "doc fee' unless it's associated with a finance plan. Also, ask that any price increase protection offer by Ford be provided to you. (The dealer might try to keep it otherwise.) Just some things to consider that I've learned from watching this forum for 11 months.

 

[colinl]

Depending on how the dealership chooses to write up the sales contact and perhaps state/local laws, markup could be simply a higher price written down for the truck than it shows on the sticker. A $33,500 truck might be written on the sales contract at $35,500, $2,000 markup.

Or it could be a separate line item. It would be a line for $2,000 and might be titled 'market adjustment', ADM, or I've seen 'courtesy fee' listed as well.

Either way, it is when the price of the truck exceeds the price shown on the window sticker produced by Ford. Some dealerships display their own custom window stickers, but the one produced by Ford is still there. It's available, and you have the right to see it.

BTW if you have a trade-in, dealerships absolutely can still make excessive profit even when selling you a Maverick at msrp. They would do this by wildly undervaluing your trade. So, if you're trying to negotiate for a Maverick and they're charging ADM and suddenly agree to remove it... check what they're offering for your trade. You should know fair market value for your trade in before you go to the dealership to buy a new vehicle.

 

[colinl]

whoops, missed one question from the OP about docs.

document fees are not included in the online build & price tool because they are location specific. some states regulate them and you'll see them capped at $250-500 or something like that. $800 is a little high but not strange and it probably is document related and not just Additional Dealer Markup under another name. a doc fee $1,000 or higher would get my attention.

btw, it's been too long since I visited Fort Collins. last time I was there, I had to wear at mask to go the restroom at Prost.

 

[caa60126]

Usually the mark ups are on trucks available to be purchased actually off the lot. These are often prior owned by people just flipping them for profit or trade ins by someone who got a good deal on a new one. They may also be trucks that were ordered, but got refused by the customer for whatever reason. A scrupulous dealer won't mark up beyond MSRP for an ordered Maverick. Ford doesn't approve of the practice. Your dealer sounds good, a deposit is up to a given dealer (not required by Ford) and should be refundable. Your dealers 'doc fee" is on the high side but, probably within the norm for your area. Make sure you get a sales document outlining the total price signed by the sales manager, not just salesman. I think an acquisition fee is just another "doc fee' unless it's associated with a finance plan. Also, ask that any price increase protection offer by Ford be provided to you. (The dealer might try to keep it otherwise.) Just some things to consider that I've learned from watching this forum for 11 months.

Solid input, thanks much.

 

[caa60126]

Depending on how the dealership chooses to write up the sales contact and perhaps state/local laws, markup could be simply a higher price written down for the truck than it shows on the sticker. A $33,500 truck might be written on the sales contract at $35,500, $2,000 markup.

Or it could be a separate line item. It would be a line for $2,000 and might be titled 'market adjustment', ADM, or I've seen 'courtesy fee' listed as well.

Either way, it is when the price of the truck exceeds the price shown on the window sticker produced by Ford. Some dealerships display their own custom window stickers, but the one produced by Ford is still there. It's available, and you have the right to see it.

BTW if you have a trade-in, dealerships absolutely can still make excessive profit even when selling you a Maverick at msrp. They would do this by wildly undervaluing your trade. So, if you're trying to negotiate for a Maverick and they're charging ADM and suddenly agree to remove it... check what they're offering for your trade. You should know fair market value for your trade in before you go to the dealership to buy a new vehicle.

I will hoist one in the Biergarten for you, much thanks for the great info, greatly appreciated.
No trade-in, no financing.

 

[Rono]

I am a new and inexperienced prospective buyer. I am thinking about the XLT, 4k, x4, and some additional add-ons, so I use the online price tool to come up with a number.

I hear a lot of talk about "markup", but where does that number come into play?

My dealer says an 800-dollar "doc fee" is added to the online price calc and that is it. Of course, local taxes, plates, and registration fees. Are the "markup" numbers added by some dealers later? Is it already in the MSRP online price calc?

Nothing down, no deposit, back out anytime, no penalty, they said they could sell that unit in a week. One dealer did ask for 1k down and if I back out it is lost.

FoCo, Colorado,

• BASE MSRP
• OPTIONS
• ACCESSORIES
• DESTINATION CHARGES
• ACQUISITION FEES
• TOTAL MSRP
• ESTIMATED NET PRICE 35.135k

Excuse my naivety, please.

 

[NJBob]

Usually the mark ups are on trucks available to be purchased actually off the lot. These are often prior owned by people just flipping them for profit or trade ins by someone who got a good deal on a new one. They may also be trucks that were ordered, but got refused by the customer for whatever reason. A scrupulous dealer won't mark up beyond MSRP for an ordered Maverick. Ford doesn't approve of the practice. Your dealer sounds good, a deposit is up to a given dealer (not required by Ford) and should be refundable. Your dealers 'doc fee" is on the high side but, probably within the norm for your area. Make sure you get a sales document outlining the total price signed by the sales manager, not just salesman. I think an acquisition fee is just another "doc fee' unless it's associated with a finance plan. Also, ask that any price increase protection offer by Ford be provided to you. (The dealer might try to keep it otherwise.) Just some things to consider that I've learned from watching this forum for 11 months.

Yes the doc fees are a ripoff but you have to pay them. Some states have a fixed price, NY is $175. NJ averages about $500. Herd Florida is the worst $1k or more.

 

[Rono]

I got the Retired Military discount, also the Z plan from my Brother,$500 for the Mil, my Dealer didnt know what the Z plan discount was.., been waiting since Sep 19 22, they say it's in Chicago waiting on Hauler..you Doc fee sounds a little high.

 

[caa60126]

I got the Retired Military discount, also the Z plan from my Brother,$500 for the Mil, my Dealer didnt know what the Z plan discount was.., been waiting since Sep 19 22, they say it's in Chicago waiting on Hauler..you Doc fee sounds a little high.

Thanks for your service.

Colorado had unregulated doc fees, fairly average, I did check around on that.

 

[Larrythelunatic]

MSRP
Just keep in mind what the “S” means.

 

[caa60126]

MSRP
Just keep in mind what the “S” means.

True that, at any rate I ordered one the other day. A year from now I will be in a good position financially and need wise. No obligation, so I pulled the trigger.

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